Oil price manipulation as a geoeconomic weapon against the Soviet Union / Russia

Document Type : Original Article

Authors

1 Doctoral School of Earth Sciences – Geopolitical Program, Department of Political Geography, Development and Regional Studies, University of Pecs, Hungary

2 Department of Political Geography, Development and Regional Studies, University of Pecs, Hungary

Abstract

In modern geopolitics economic warfare has become more and more significant. This paper examines a special segment of economic warfare: can oil price be manipulated and serve as an effective geopolitical (or geoeconomic) weapon, and if that is the case, under what conditions? This article demonstrates that the United States and its allies (mainly Saudi Arabia)—when certain economic, technological and political conditions are fulfilled—may be able to achieve a considerable and lasting decline in oil prices to restrain the military/geopolitical activities of the Soviet Union/Russia that are deemed overly excessive. This paper analyses the relationship between oil market and geopolitics in the last decade of the Cold War, when oil price fell sharply contributing to the collapse of the Soviet economic and political system. Research results may prove useful in forming the geopolitical/geoeconomic strategy of superpowers and regional powers of the Persian Gulf (e.g. Iran or Saudi Arabia) as well, and it may be applied to forecast oil price fluctuations too.

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Geopolitics Quarterly

Articles in Press, Accepted Manuscript
Available Online from 16 September 2022

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History

  • Receive Date: 16 January 2022
  • Revise Date: 03 September 2022
  • Accept Date: 16 September 2022
  • First Publish Date: 16 September 2022

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